Question 1

-If the economy were producing at point F,

Accepted Answer

A) it would not be using its resources efficiently. 
B) it would be in a recession. 
C) it could gain units of guns without having to sacrifice units of butter. 
D) it would be specializing exclusively in butter production. 
A) it would not be using its resources efficiently. 
B) it would be in a recession. 
C) it could gain units of guns without having to sacrifice units of butter. 
D) it would be specializing exclusively in butter production.

Question 2

-Which point shows where our economy was temporarily operating during World War II, when we had reduced our unemployment rate to about two percent?

Accepted Answer

A) Point A 
B) Point B 
C) Point C 
D) Point D 
A) Point A 
B) Point B 
C) Point C 
D) Point D

Question 3

-The economy could produce at 8 units of outboard motors and 18 units of robots

Accepted Answer

A) immediately only under unusual circumstances such as war. 
B) if there is economic growth over a period of years. 
C) under no circumstances. 
D) immediately only under unusual circumstances such as war AND if there is economic growth over a period of years. 
A) immediately only under unusual circumstances such as war. 
B) if there is economic growth over a period of years. 
C) under no circumstances. 
D) immediately only under unusual circumstances such as war AND if there is economic growth over a period of years.

Question 4

-Place point Q on the graph to indicate an unemployment rate of 100 percent, point R to indicate full employment and point S to indicate where our economy usually operates.

Accepted Answer

The answer of  
-Place point Q on the graph...

Question 5

According to the law of increasing costs, as a textile company spends more money to eliminate dust particles from the workplace to increase worker safety

Accepted Answer

A) the cost of reducing 70 percent of the dust in the factory will be the same as the cost of reducing the first 50 percent of the dust in the factory. 
B) the cost of reducing 70 percent of the dust in the factory will be less than the cost of reducing the first 50 percent of the dust in the factory. 
C) the cost of reducing 70 percent of the dust in the factory will be greater than the cost of reducing the first 50 percent of the dust in the factory. 
A) the cost of reducing 70 percent of the dust in the factory will be the same as the cost of reducing the first 50 percent of the dust in the factory. 
B) the cost of reducing 70 percent of the dust in the factory will be less than the cost of reducing the first 50 percent of the dust in the factory. 
C) the cost of reducing 70 percent of the dust in the factory will be greater than the cost of reducing the first 50 percent of the dust in the factory.

Question 6

Entrepreneurs

Accepted Answer

A) receive most of their income through inheritance. 
B) receive interest payments for their services. 
C) undertake risky activities in order to earn profits. 
D) are unemployed except during economic boom periods. 
A) receive most of their income through inheritance. 
B) receive interest payments for their services. 
C) undertake risky activities in order to earn profits. 
D) are unemployed except during economic boom periods.

Question 7

-Referring to a production possibilities curve and the goods being compared, depict the economic event. Assuming the United States was producing at full employment levels in the late 1980s, peace breaks out as the Cold War ends (guns vs. butter).

Accepted Answer

A) A movement from a point inside the curve to a point on or near the curve 
B) A movement from a point on or near the curve to a point inside the curve 
C) A shift in the entire curve to the right (outward) 
D) A shift in the entire curve to the left (inward) 
E) A movement along the curve 
A) A movement from a point inside the curve to a point on or near the curve 
B) A movement from a point on or near the curve to a point inside the curve 
C) A shift in the entire curve to the right (outward) 
D) A shift in the entire curve to the left (inward) 
E) A movement along the curve

Question 8

If our economy is operating at peak efficiency, it is on its __________________________.

Accepted Answer

production

Question 9

-Referring to a production possibilities curve and the goods being compared, depict the economic event. The bubonic plague (Black Death) in the 1300s killed one-third of Europe's population (capital goods vs. consumer goods).

Accepted Answer

A) A movement from a point inside the curve to a point on or near the curve 
B) A movement from a point on or near the curve to a point inside the curve 
C) A shift in the entire curve to the right (outward) 
D) A shift in the entire curve to the left (inward) 
E) A movement along the curve 
A) A movement from a point inside the curve to a point on or near the curve 
B) A movement from a point on or near the curve to a point inside the curve 
C) A shift in the entire curve to the right (outward) 
D) A shift in the entire curve to the left (inward) 
E) A movement along the curve

Question 10

The reason that opportunity costs arise is that

Accepted Answer

A) people have unlimited wants. 
B) there are no alternative decisions that could be made. 
C) an economy relies on money to facilitate exchange of goods and services. 
D) resources are scarce. 
A) people have unlimited wants. 
B) there are no alternative decisions that could be made. 
C) an economy relies on money to facilitate exchange of goods and services. 
D) resources are scarce.

Question 11

If our unemployment rate is 10 percent and our capacity utilization rate is 70 percent, our economy is in the midst of a ___________.

Accepted Answer

The answer of If our unemployment rate is 10 percent...

Question 12

Economic growth can be shown by ____________________ production possibilities curve.

Accepted Answer

A) an outward shift of the 
B) an inward shift of the 
C) a movement from one point to another along the 
D) a movement to a point inside the 
A) an outward shift of the 
B) an inward shift of the 
C) a movement from one point to another along the 
D) a movement to a point inside the

Question 13

-What is the opportunity cost of going from point D to point C?

Accepted Answer

The answer of  
-What is the opportunity cost of...

Question 14

Which statement is true?

Accepted Answer

A) The economic problem is limited to poverty. 
B) Scarcity is no longer an economic problem in the United States. 
C) If we all had more money there would be less scarcity. 
D) None of these statements are true. 
A) The economic problem is limited to poverty. 
B) Scarcity is no longer an economic problem in the United States. 
C) If we all had more money there would be less scarcity. 
D) None of these statements are true.

Question 15

-The unemployment rate falls when we go from

Accepted Answer

A) W to X. 
B) X to W. 
C) X to Y. 
D) Y to X. 
A) W to X. 
B) X to W. 
C) X to Y. 
D) Y to X.

Question 16

Resources include

Accepted Answer

A) land, labor and money. 
B) entrepreneurship and capital. 
C) capital and money. 
D) corporations and partnerships. 
E) monopoly and perfect competition. 
A) land, labor and money. 
B) entrepreneurship and capital. 
C) capital and money. 
D) corporations and partnerships. 
E) monopoly and perfect competition.

Question 17

The entrepreneur

Accepted Answer

A) runs his or her own business and risks his or her own money. 
B) does not necessarily run her or his own business nor risks her or his own money. 
C) runs his or her own business, but does not necessarily risk his or her own money. 
D) does not necessarily run her or his own business, but does risk her or his own money. 
A) runs his or her own business and risks his or her own money. 
B) does not necessarily run her or his own business nor risks her or his own money. 
C) runs his or her own business, but does not necessarily risk his or her own money. 
D) does not necessarily run her or his own business, but does risk her or his own money.

Question 18

Each of the following is an example of capital, except

Accepted Answer

A) an office building. 
B) gold in a gold mine. 
C) an assembly line. 
D) a computer system. 
A) an office building. 
B) gold in a gold mine. 
C) an assembly line. 
D) a computer system.

Question 19

-If the country wanted to produce the maximum total number of units of guns and butter combined, it would produce at point(s) _______________.

Accepted Answer

The answer of  
-If the country wanted to produce...

Question 20

The United States was able to produce temporarily outside its production possibilities curve for several years during World War II by doing which of the following?

Accepted Answer

A) Recruiting housewives to work in tank and airplane factories. 
B) Convincing workers who qualified for retirement to put off retirement. 
C) Pressing older machinery and equipment into use. 
D) Expansion of the work week. 
E) All of the choices are true 
A) Recruiting housewives to work in tank and airplane factories. 
B) Convincing workers who qualified for retirement to put off retirement. 
C) Pressing older machinery and equipment into use. 
D) Expansion of the work week. 
E) All of the choices are true

-If the economy were producing at point F,

-Which point shows where our economy was temporarily operating during World War II, when we had reduced our unemployment rate to about two percent?

-The economy could produce at 8 units of outboard motors and 18 units of robots

-Place point Q on the graph to indicate an unemployment rate of 100 percent, point R to indicate full employment and point S to indicate where our economy usually operates.

According to the law of increasing costs, as a textile company spends more money to eliminate dust particles from the workplace to increase worker safety

Entrepreneurs

-Referring to a production possibilities curve and the goods being compared, depict the economic event. Assuming the United States was producing at full employment levels in the late 1980s, peace breaks out as the Cold War ends (guns vs. butter).

If our economy is operating at peak efficiency, it is on its __________________________.

-Referring to a production possibilities curve and the goods being compared, depict the economic event. The bubonic plague (Black Death) in the 1300s killed one-third of Europe's population (capital goods vs. consumer goods).

The reason that opportunity costs arise is that

If our unemployment rate is 10 percent and our capacity utilization rate is 70 percent, our economy is in the midst of a ___________.

Economic growth can be shown by ____________________ production possibilities curve.

-What is the opportunity cost of going from point D to point C?

Which statement is true?

-The unemployment rate falls when we go from

Resources include

The entrepreneur

Each of the following is an example of capital, except

-If the country wanted to produce the maximum total number of units of guns and butter combined, it would produce at point(s) _______________.

The United States was able to produce temporarily outside its production possibilities curve for several years during World War II by doing which of the following?

A Brief Economic History of the United States

The Mixed Economy

Supply and Demand

Demand, Supply, and Equilibrium

The Price Elasticities of Demand and Supply

Theory of Consumer Behavior

Cost

Profit, Loss, and Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Corporate Mergers and Antitrust

Demand in the Factor Market

Labor Unions

Labor Markets and Wage Rates

Rent, Interest, and Profit

Income Distribution and Poverty

International Trade

International Finance

Filters

Exam 2: Resource Utilization

-If the economy were producing at point F,

-Which point shows where our economy was temporarily operating during World War II, when we had reduced our unemployment rate to about two percent?

-The economy could produce at 8 units of outboard motors and 18 units of robots

-Place point Q on the graph to indicate an unemployment rate of 100 percent, point R to indicate full employment and point S to indicate where our economy usually operates.

According to the law of increasing costs, as a textile company spends more money to eliminate dust particles from the workplace to increase worker safety

Entrepreneurs

-Referring to a production possibilities curve and the goods being compared, depict the economic event. Assuming the United States was producing at full employment levels in the late 1980s, peace breaks out as the Cold War ends (guns vs. butter).

If our economy is operating at peak efficiency, it is on its __________________________.

-Referring to a production possibilities curve and the goods being compared, depict the economic event. The bubonic plague (Black Death) in the 1300s killed one-third of Europe's population (capital goods vs. consumer goods).

The reason that opportunity costs arise is that

If our unemployment rate is 10 percent and our capacity utilization rate is 70 percent, our economy is in the midst of a ___________.

Economic growth can be shown by ____________________ production possibilities curve.

-What is the opportunity cost of going from point D to point C?

Which statement is true?

-The unemployment rate falls when we go from

Resources include

The entrepreneur

Each of the following is an example of capital, except

-If the country wanted to produce the maximum total number of units of guns and butter combined, it would produce at point(s) _______________.

The United States was able to produce temporarily outside its production possibilities curve for several years during World War II by doing which of the following?

A Brief Economic History of the United States

The Mixed Economy

Supply and Demand

Demand, Supply, and Equilibrium

The Price Elasticities of Demand and Supply

Theory of Consumer Behavior

Cost

Profit, Loss, and Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Corporate Mergers and Antitrust

Demand in the Factor Market

Labor Unions

Labor Markets and Wage Rates

Rent, Interest, and Profit

Income Distribution and Poverty

International Trade

International Finance

Filters